PROVIDENCE, R.I. - More changes may be in the works for Textron Inc.'s plastics intensive units.
In a July 18 conference call, Chief Executive Officer Lewis Campbell said the company is continuing its effort to sell some holdings. Textron expects to complete some kind of a deal for at least part of Troy, Mich.-based Textron Automotive Co. Inc. by the end of this year.
In addition, more closures could be on the way for operations within Textron Fastening Systems, he said, while the corporation expects to reduce its employee base by another 1,600 people throughout all of its divisions.
Providence-based Textron Inc. is looking to cut its loses where it faces the biggest pricing pressures and the smallest return on its investments, Campbell said. The company's three-pronged approach to improve its fiscal status focuses on restructuring, redesigning its use of technology and purchasing and simplifying its holdings.
``Although it's been damn ugly, this economy has been an impetus to follow these steps,'' he said.
The company already is considering how it would use funds garnered from a large-scale sale within automotive, Campbell said.
It has not decided exactly what industries it would invest in, but it is seeking something with a higher profit margin than the auto industry.
``We've got to find a way we can make this company as strong as it can be,'' Campbell said.
For Troy-based Fastening Systems, that likely will mean further reductions in North America but investments in Eastern Europe, where labor costs are cheaper, he said.
``It's going to mean less production in the U.S., but we've got to do what we've got to do,'' he said.